JSE listed Aspen Pharmacare Holdings Limited and Lupin Limited of India have entered into an agreement to collaborate in the tuberculosis (TB) related products market in South Africa. The agreement involves cooperation in the areas of technology, manufacture and marketing.
Stephen Saad, Aspen Group Chief Executive said, “the agreement enhances South Africa and Aspen’s ability to respond to the growing TB pandemic that continues to affect all sectors of society. HIV and AIDS have substantially raised TB infection rates in South Africa, thereby placing immense pressure on the country’s healthcare resources. Aspen also previously received licenses for multi-drug resistant TB drugs from Eli Lilly. These combined deals complement Aspen’s strength in the TB environment. Consequently Aspen is the only pharmaceutical manufacturer in the country to offer both first and second line TB treatments and Aspen is the continent’s leader in providing pharmaceutical solutions for poverty-related diseases.”
Dr K K Sharma, Managing Director, Lupin Limited said, “this is a great opportunity for Lupin and Aspen to bring cost effective TB medication to the growing South African market. We are enthusiastic about our relationship with Aspen and we would like to see the scope of this expand over time.”
The arrangement will leverage the Lupin’s technological expertise relating to cures for TB, as well as Aspen’s extensive marketing and technical capabilities. The current market size for TB medication in South Africa is estimated at approximately USD 15 million per annum.
The agreement makes provision for milestone payments of up to USD 2 million from Aspen to Lupin based on achievement of key deliverables and a profit sharing arrangement. The agreement remains subject to the fulfilment of certain conditions precedent.
Headquartered in Mumbai, Lupin (http://www.lupinworld.com) develops, manufactures and markets generic intermediates, active pharmaceutical ingredients and finished dosages. Its FY 2004-05 revenues were USD 280 million. Eleven of Lupin’s plants have been approved by the US FDA and two facilities have been approved by the UK MHRA.
Aspen is the southern hemisphere’s largest generic pharmaceutical manufacturer and a global leader in generic ARVs. Aspen is also acknowledged as Africa’s largest pharmaceutical manufacturer and as a major supplier of branded pharmaceutical and healthcare products to southern African and selected international markets.
Aspen has an extensive basket of quality, effective and affordable products in the branded, generic, over-the-counter, personal care, fast moving consumer goods, nutriceutical and infant milk formula categories.
Aspen became the world’s first pharmaceutical manufacturer to be granted US Food and Drug Administration (FDA) approval to manufacture combination therapy generic anti-retrovirals (ARVs) in a co-packed form. This was enabled through voluntary licences from GlaxoSmithKline and Boehringer Ingleheim and underscores Aspen’s scientific and technical capabilities, its manufacturing and quality standards, and GMP compliances.
Aspen’s off shore subsidiaries contribute toward the Group’s strategy of establishing a presence in selected geographic areas. Co-Pharma operates in the UK market, while UK based Aspen Resources is an intellectual property owning subsidiary of Aspen Holdings. Aspen Pharmacare Australia continues to complement the Aspen Group’s off shore strategy of increased growth in selected off-shore territories and it is an extension of the Group’s worldwide network of strategic alliances offering a range of products in niche market areas.